List of figures and tables Prologue Miracles and mirages Serial crimes Beginning of the end/end of the beginning Knowns and unknowns Unreliable recollections Summary judgment 1 Financial WMDs - derivatives demagoguery School days It's all Chinese to me A derivative idea Betting shops Secret subtexts Leveraged speculations Under the radar Whole lotta swapping going on The golden age/LIBOR minus 50 Warehouses Serial killings Forbidden fruit Derived logic 2 Beautiful lies - the 'sell' side Smile and dial Market colour Rough trade Analyze this Class wars Ultra vires Feudal kingdoms Uncivil wars Golden rules Business models The medium is the message Bondage Tabloid cultures Conspicuous currency Ethnic cleansing Foreign affairs FILTH Lost in translation A day in the life 3 True lies - the 'buy' side Turn of the fork Risky business Magic kingdoms Stripping or stacking/hedging perils, again Me too 'Zaiteku' or the bride stripped bare The gamble in P & G Tobashi, baby Gnomes of Zermatt and Belgian dentists Death swaps Investment fashions Alpha, beta, zeta Looking after the relatives Agents all Unique selling propositions 4 Show me the money - greed lost and regained Money uncertainty Toll booths Take a seat Efficient markets On the platform A day at the races Black swans, black sheep Trading places Secret intelligence Overwhelming force Oracle of Delphi Free money The colour of money In reserve A comedy of errors Black holes What's the number? Nothing like excess Nice work if you can get it Dukes of Hazard 5 The perfect storm - risk mismanagement by the numbers Shock therapy Holy risk! Risk spin Risque matters Placebo effects Among the unbelievers Risk cults In the long run . . . Modus operandi Secret trader's business Let the good times roll The perfect storm Weather forecasts Endgame Mean risk Extreme sports 6 Super models - derivative algorithms Out of the sheltered workshops Rocket science Culture wars Conveyor belts Trivial pursuits Grand oprey The quest Genesis Gospels Greek tragedies Failing the model test CSI (Crime Scene Investigation) 1987 - 'Oh LOR-dy!' CSI 1992 - ERM (extremely risky, man!) CSI 1998 - selling England by the pound CSI 1998 - Asian fever Model envy Omitted variable bias 7 Games without frontiers - the inverse world of structured products Driving over lemons The best of times . . . the worst of times Ghostbusters It wasn't me, sir Heaven and hell Split personality Golfing holidays The flood Power to the people Recycling junk Six packs Take no prisoners The usual suspects 8 Share and share alike - derivative inequity Billion dollar baby Self arbitrage Arbitraging others Taking it over Buying back the farm Who's fooling who? Strippers Pearls of wisdom Own goals Taxing times Fund times 9 Credit where credit is due - fun with CDS and CDO Credit wars Credit epiphanies First-to-credit derivatives Remote credit Mistaken identity Heard it on the grapevine Guaranteed delivery Re-re-re-re-restructuring - CDS stutters Beyond the push and pull Imitation and flattery Tranche warfare It's super A capital idea The arbitrage age Hangovers UFOs Geeks with Greeks Never believe your own lies Russian dolls Black holes Epilogue The Asian century redux Vexatious litigation The more things change Hot tubbing Rogue trader Bangs and whimpers The China Club BOAT (Best of all time) Knowns and unknowns Afterword: Credit crunch - the new known known of financial markets Living in the Age of Kali ... Supersize my debt! Would you like debt with that? The new liquidity factory Lying NINJA mortgagors The lines of transmission It's different this time! The bear comes out of hibernation Waiting for the other shoe to fall ... Financial shell games The short and long of it all Model shock Missing the mark Truth in labelling Regulatory irregularities Reversion to mean Credit crunch Notes Index
A sensational and compelling insider's view that lifts the lid on the fast-paced and dazzling world of derivatives, now in a smaller, lower price, paperback mass market format.
Satyajit Das is a globally known and respected consultant in the area of financial derivatives and risk management. He is the author of bestselling Traders,Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives and Extreme Money.